When you close a store, your customer has a few options. They might go to a neighboring store within an acceptable distance of them; they might go to the competition; they may go to your online store; they may stop shopping the category altogether and save the money instead, or some combination of the above. These choices above focus on your existing customer base, which is about customer retention. With me so far? Most store sales come from your existing customer base, specifically your loyal shoppers, no doubt. The reality, though, is that a store is also central to a retailer’s or department store’s acquisition strategy, as they create awareness and work as a marketing vehicle. So, how do you factor this into the equation of a store closure?
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